Record Sales Amid Tightening Supply: What Lies Ahead for the Private Residential Market This Year?

The new private home market delivered a stellar performance in 2025.

According to the latest official figures, a total of 10,821 new private residential units (excluding Executive Condominiums, or ECs) were sold last year—a sharp year-on-year surge of 67% and the highest annual tally recorded since 2021.

This impressive performance not only reflects a strong rebound in market demand, but also signals that the private residential market has decisively moved past the doldrums of recent years.

December Sales Soften in Seasonal Pullback

Despite the robust full-year numbers, new private home sales in December dropped by approximately 39% month-on-month, with only 197 units transacted.

However, sales were largely on par with December of the previous year.

Market analysts note that the softer December showing was primarily due to the year-end holiday lull, a dearth of major new project launches, and growing wait-and-see sentiment among buyers.

Flash estimates released by the Urban Redevelopment Authority (URA) revealed that of the 197 units sold in December: the Rest of Central Region (RCR) accounted for 56%

Outside Central Region (OCR) accounted for 34%

Core Central Region (CCR) accounted for 10%

In terms of geographical distribution, the RCR continued to drive the bulk of transactions.

Why Did Sales Cross the 10,000 Mark? Supply Was the Key Driver

On the supply side, property developers significantly stepped up the pace of new project launches last year.

Data shows that in 2025:

A total of 27 new private residential projects were launched

Total units launched reached approximately 11,482, surging nearly 73% year-on-year

New private home launch volume hit a near 12-year high

Industry watchers pointed out that while launch volumes did not surpass the historic peak of 15,885 units in 2013, supply has clearly returned to a healthy, moderately high range.

2026 Sales May Moderate to 8,000–9,000 Units

Notwithstanding last year's standout performance, most analysts take a more conservative view on transaction volumes for this year.

Consensus estimates cite several key factors: a high base effect from last year, fewer new project launches slated for rollout, and developers potentially holding back launches to wait for more favourable pricing windows.

Price Trajectory: Moderate Upside Ahead?

Although sales volumes are anticipated to ease, market expectations regarding price trends remain broadly aligned, with continued room for upside.

This resilience is underpinned by: a moderation in new launch supply, a larger proportion of mass-market suburban launches offering more palatable price quantums, and enduring genuine owner-occupier demand.

The market projects new private home prices to climb moderately by around 2% to 5% this year, assuming macroeconomic conditions remain stable and no unexpected cooling measures are introduced.

Nonetheless, analysts caution that if homebuying sentiment overheats, the possibility of policymakers stepping in with fresh cooling measures cannot be ruled out.

While 2025 was a "banner year" for new private home sales, 2026 is shaping up to be a transitional year marked by greater market rationality, calibrated launch volumes, and steady price appreciation.

For prospective buyers, this year will be all about strategic selection—zeroing in on the right location, project, and entry timing.